Premera reimbursing Alaska state insurance program $25 million

FAIRBANKS—Premera Blue Cross Blue Shield of Alaska, the only individual insurance carrier in the state, announced Friday it is making a one-time $25 million reimbursement to fund high-cost health insurance claims through the Alaska Reinsurance Program as part of an agreement with the Alaska Division of Insurance.

"We believe offering to make a one-time reimbursement to the Alaska Reinsurance Program was the right thing to do, given that our claims this year were much lower than we or the state anticipated," said Jim Grazko, president and general manager of Premera’s Alaska office. "This reimbursement underscores our continued commitment to Alaska’s individual insurance market, especially to those individuals who are most in need of care, and reinforces our efforts to work with the state to provide all Alaskans with access to high-quality care at an affordable price."

According to Premera, the agreement specifies the state's Division of Insurance direct the Alaska Comprehensive Health Insurance Association, which operates the state's popular reinsurance program, to use the funds "solely for health insurance claims in the individual market."

The Alaska Division of Insurance manages Premera and keeps a close eye on the finances of the group. The Alaska Reinsurance Program is a state-operated program that covers claims in the individual health care market for those with one or more of the 33 previously identified higher-cost conditions in hopes of stabilizing premiums for all customers.

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